Rent2Rents is one of the most popular property strategies in the UK. Samuel details the pro and cons of Rent2Rent and what it takes to make a success of it.
A rent2rent is when you rent a property of a landlord then you rent the property out again. Before doing this you though you and the landlord will need to have agreed upon a guaranteed amount of rent you will pay each month. Usually, the landlord will rent it out for an on a reasonably low fee.
Not all landlords will want to be involved in this type of strategy so you need to make sure you are targeting the right type of landlord, not just anyone.
The type that you should be looking for tend to be hands-off with their property, they don’t want the stress that comes with the maintenance. They may also be lacking the necessary funds to do a refurb to maximize the properties earnings.
The property itself will need to be of a certain standing. In a good location most notably close to the city center. The house should be underachieving in some sorts and no reaching its full potential. You will need to be able to spot this and turn its fortunes around. Converting it into an HMO where you can double the amount of rent the property is currently earning is a common path within Rent2Rents.
Like all properties, they can become hard work especially if the building you are renting requires work that the preceding landlord hasn’t done. So make sure the profit you are making is in the excess of £500+ at least. Finally, people always question the legitimacy of rents 2 rents they almost seem to go to be true.
They don’t require a lot of money and are fairly entry standard. A key to their success is making sure the legal side of things is all in place having a corporate let management agreement in a key document for rent2rents.